Akari Therapeutics: A Buy Now Ahead of Late 2025 Catalysts

Akari Therapeutics (NASDAQ: AKRI) is poised to become a compelling investment as it navigates near-term financial and operational milestones that could revalue its stock. Despite a constrained cash position, the company’s strategic focus on its lead ADC candidate, AKTX-101, and efforts to secure partnerships suggest this is a critical moment to position ahead of upcoming catalysts. Here’s why investors should pay attention now.

Financial Resilience: A Tightrope Walk with Strategic Cushions

Akari’s Q1 2025 cash position of $2.6 million (as of March 31) appears precarious at first glance. However, two critical factors soften the blow:
1. The March 2025 financing: A $6.0 million private placement, with $4.0 million received in April, extends its runway to September 2025, giving the company breathing room.
2. Expense reductions: The net loss shrank to $3.7 million in Q1 2025 from $5.6 million in Q1 2024, driven by cuts in R&D (down to $0.8M from $2.3M) and G&A (down to $2.7M from $3.7M). This reflects a disciplined focus on its core ADC program, AKTX-101, while shelving less promising legacy projects like the HSCT-TMA program.

This visual would show a stabilization in cash reserves despite operational challenges, highlighting management’s ability to conserve capital.

Pipeline Progress: AKTX-101 as the Catalyst to Watch

Akari’s future hinges on its lead asset, AKTX-101, an antibody-drug conjugate (ADC) targeting Trop2, a protein highly expressed in multiple cancers, including triple-negative breast cancer (TNBC) and urothelial carcinoma. Preclinical data expected in H2 2025 could validate the drug’s potential, setting the stage for IND filings and partnerships.

Why is this a game-changer?
- Novel payload: AKTX-101 uses a PH1 payload, a mechanism distinct from competitors like Roche’s DS-8201 (Enhertu), which uses a topoisomerase inhibitor. This differentiation could carve out a niche in hard-to-treat cancers.
- Strategic timing: With the HSCT-TMA program sidelined, Akari has pivoted entirely to oncology, aligning with its new Head of Business Development, Mark Kubik, who brings expertise in oncology partnerships.

Strategic Partnerships: The Non-Dilutive Lifeline

Akari’s survival beyond September 2025 hinges on securing partnerships or out-licensing non-core assets. Key moves include:
1. Out-licensing legacy programs: The company is exploring deals for its pipeline in inflammation, ophthalmology, and rare diseases, which could generate upfront payments without diluting equity.
2. Collaborations for AKTX-101: A strategic partnership with a larger pharma player could provide the capital and expertise to fast-track development.

The urgency here is clear: Akari’s current cash burn rate of ~$3.7 million per quarter means it must secure additional funding or partnerships by mid-2026. However, the preclinical data for AKTX-101 in late 2025 could act as a “halo effect,” attracting interest from both investors and partners.

Undervalued vs. Peers: A Contrarian Opportunity

Akari’s market cap of $20 million (as of May 13, 2025) is a fraction of peers in the ADC space, such as Seagen ($22 billion) or ImmunoGen ($800 million). Even adjusting for stage of development, the stock trades at a discount to its potential.

Consider this:
- Preclinical success could revalue the stock: If AKTX-101’s preclinical data show promise, the stock could leap to $1–$2 per share, especially if a partnership follows.
- Low downside risk: With $2.6 million in cash and a $6 million financing already in the books, the balance sheet, while tight, isn’t yet at a death spiral.

A chart showing Akari’s stock lagging peers despite its ADC focus could underscore its undervalued status.

Risks and the Bear Case

• Catalyst failure: If AKTX-101’s preclinical data disappoints, the stock could crater.
• Funding delays: Missing partnership targets by mid-2026 could force dilutive equity raises.

However, these risks are mitigated by the company’s optionality: even if AKTX-101 underwhelms, out-licensing other programs could still provide liquidity.

The Bottom Line: Buy Now for the Catalyst Play

Akari’s stock is a high-risk, high-reward bet, but the upcoming AKTX-101 data readout in late 2025 creates a binary event that could unlock value. With a cash runway extended to September 2025 and strategic moves to monetize non-core assets, the company is positioned to survive until then.

For investors willing to take on volatility, this is a contrarian opportunity to buy at $0.25 per share—far below the potential upside if AKTX-101 succeeds. The stock’s valuation is too cheap to ignore given the pipeline’s potential and the management’s demonstrated ability to cut costs.

Action to take: Aggressively accumulate shares now ahead of the H2 2025 catalysts.

Investors should conduct their own due diligence and consider their risk tolerance before making investment decisions.